- Utilisation possible with loans
- Only compensatory payment between the reference and agreed fixed rate is made
- Required accounting as with derivative
- Client pays the bank so-called premium for option
Floating interest rate with limitation against decrease (FLOOR) gives client a possibility to set a minimum interest rate level for a long-term investment.
- Cost-free solution for ensuring the minimum and maximum interest rate
- Possibility to participate in the eventual interest rate decrease (with loan)
Click here for detailed description of financial tools and related risks.